Wealth and Asset Price Effects on Economic Activity

Disaggregate Income and Wealth Effects in the Largest Euro Area Countries

“…The differences in the estimated elasticities and MPCs out of wealth components may reflect a number of aspects. In particular, non-financial (mainly housing), equity and non-equity financial wealth differ in terms of liquidity, risk and collateral characteristics (see Altissimo et al (2005) and references therein). The MPC out of liquid assets (mostly financial assets) is likely to be greater than that out of illiquid (mostly housing) wealth.…”

Inflation-Linked Bonds from a Central Bank Perspective

“…This notwithstanding, a substantial degree of co-movement in the four markets is immediately apparent from the chart, which suggests that trends over time are determined by relatively global factors. 29 In this regard, it is worth noting the upward trend exhibited by the four BEIRs since mid-2003, which may reflect increasing concerns among market participants about the upsurge in commodity prices, mainly oil prices, and their impact on future inflation. Second, beyond a substantial co-movement, there seem to be some clear differences in the average level of the BEIRs.…”

Long-Term Growth Prospects for the Russian Economy

“…28 Despite the importance of the oil and gas sector in Russia oil production growth has started to decelerate which underscores the need for large investments in these industries. 29 Without massive new investment, oil and gas production could start to decline as early as in the next decade (Bank of Finland, 2006).…”